Test: Profit, Loss and Discount - Class 8 MCQ

Marked Price = Cost Price + (30% of Cost Price) = ₹600 + (0.30 × ₹600) = ₹600 + ₹180 = ₹780. Understanding markup is essential for pricing strategies in retail.

Loss occurs when the selling price is lower than the cost price, and the formula used is Loss = Cost Price - Selling Price. Understanding this helps businesses avoid making unprofitable sales.

The total amount payable, including tax, is calculated by adding the tax to the selling price (Total Amount = Selling Price + Tax). This is crucial for customers to understand total costs incurred.

Discount = 15% of ₹600 = ₹90. Selling Price = Marked Price - Discount = ₹600 - ₹90 = ₹510. This calculation helps consumers understand the savings they receive from discounts.

Profit is determined when the selling price exceeds the cost price. Thus, the correct formula is Profit = Selling Price - Cost Price. This calculation helps businesses understand their financial gains from transactions.

The total cost price is calculated by adding overhead expenses to the actual cost price (Total C.P. = Actual C.P. + Overhead expenses). This helps businesses in understanding the complete cost involved in selling a product.

Profit = Selling Price - Cost Price = ₹120 - ₹100 = ₹20. The profit percentage is calculated as (Profit / Cost Price) × 100 = (20 / 100) × 100 = 20%. This percentage helps assess the profitability of the sale.

Loss = 10% of ₹200 = ₹20. Selling Price = Cost Price - Loss = ₹200 - ₹20 = ₹180. This calculation is crucial for pricing strategies in sales.

The loss percentage is calculated by the formula Loss % = (Loss / Cost Price) × 100. This metric helps in evaluating the extent of financial loss in transactions.

A discount decreases the selling price from the marked price, making products more attractive to consumers and potentially increasing sales volume.

Cost price refers to the original price paid for a product, while transportation, labor, and packaging are examples of overhead expenses incurred in acquiring and selling products.

The marked price is defined as the price before any discounts are applied. It represents the original price set by the seller, which may be subject to discounts to attract buyers.

Since profit = 25% of C.P., we can express Selling Price as S.P. = C.P. × (1 + Profit %) = C.P. × (1 + 0.25). Thus, 500 = C.P. × 1.25, giving C.P. = ₹500 / 1.25 = ₹400.

Gain = Selling Price - Total Cost Price = ₹1,200 - ₹1,000 = ₹200. Gain % = (Gain / Total C.P.) × 100 = (200 / 1,000) × 100 = 20%. This percentage reflects the efficiency of the business operation.

Tax = (5/100) × ₹500 = ₹25. Total amount = Selling Price + Tax = ₹500 + ₹25 = ₹525. This calculation is important for businesses to ensure accurate pricing for customers.

Tax = Total Amount - Selling Price = ₹848 - ₹800 = ₹48. Thus, Tax Rate = (Tax / Selling Price) × 100 = (48 / 800) × 100 = 6%. This understanding is essential for both businesses and consumers in assessing final costs.

VAT = (10 / 100) × ₹1,000 = ₹100. This amount represents the tax collected on the sale, which the business must remit to the government.

Discount = 20% of ₹1,000 = ₹200. Selling Price = Marked Price - Discount = ₹1,000 - ₹200 = ₹800. Discounts enhance sales by making items more affordable.

The selling price can be calculated using the formula S.P. = C.P. × (1 + Profit %). This formula is essential for setting prices in a way that ensures profitability.

VAT stands for Value Added Tax, which is a tax levied on the value added to goods and services at each stage of production or distribution. Understanding VAT is vital for compliance and pricing strategies in business.